To pay or not to pay? - Loan Modification Forum

mandylee76 · 08-11-2009, 08:13 PM

Three years ago we were forced to foreclose on a home with an ARM that had adjusted and went through the roof. The 2nd mortgage was with OCWEN, and because we were so far upside down, they were not paid a penny from the sale of the house. The first lender was upside down 100K on its own. OCWEN has been reporting me late ever since June of 2007, which continues to hurt my score. They have offered to settle the 75K owed for 1K. My question is, how will this affect my score? Which is better, to let it fall off in 5 years (from original delinquent date) or settle and pay the $1000.
My finances have not improved substantially, and 1K is still a fair amount of money to fork over in 15 days. I am wondering if I really have any obligation to pay this? Will it hurt or harm my credit (by making the most recent active date more current)?

sonvme1 · 08-18-2009, 05:03 AM

It depends on the state in which you live.

sonvme1 · 08-18-2009, 05:18 AM

They can come after you for the money by getting and collecting on a judgement. One thousand dollars is a good deal, take it. Non recourse only for the 1st loan and that is only offered in certain states.

08-11-2009, 08:13 PM	#1 (permalink)
mandylee76 Member Join Date: Dec 2008 Posts: 7 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	To pay or not to pay? Three years ago we were forced to foreclose on a home with an ARM that had adjusted and went through the roof. The 2nd mortgage was with OCWEN, and because we were so far upside down, they were not paid a penny from the sale of the house. The first lender was upside down 100K on its own. OCWEN has been reporting me late ever since June of 2007, which continues to hurt my score. They have offered to settle the 75K owed for 1K. My question is, how will this affect my score? Which is better, to let it fall off in 5 years (from original delinquent date) or settle and pay the $1000. My finances have not improved substantially, and 1K is still a fair amount of money to fork over in 15 days. I am wondering if I really have any obligation to pay this? Will it hurt or harm my credit (by making the most recent active date more current)?

08-18-2009, 05:03 AM	#2 (permalink)
sonvme1 Senior Member Join Date: Jul 2008 Posts: 55 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: To pay or not to pay? It depends on the state in which you live.

08-18-2009, 05:18 AM	#3 (permalink)
sonvme1 Senior Member Join Date: Jul 2008 Posts: 55 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: To pay or not to pay? They can come after you for the money by getting and collecting on a judgement. One thousand dollars is a good deal, take it. Non recourse only for the 1st loan and that is only offered in certain states.

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